I know the FIRST mortgage does not go away after an Association Foreclosure, but this question involves the other liens on the property.
A few questions:
1. When a Homeowner or Condo Association forecloses on a home, does the second mortgage get wiped out? How about any HELOC or credit lines (after the first mortgage? Which liens remain in tact on the home? My assumption is ONLY the primary mortgage, tax/city liens, etc.
2. If the Association forecloses, and a third party purchases the property, but the bidding at the Foreclosure sale goes HIGHER than the Association foreclosure amount, who gets to collect the excess money?3. Also, does it matter what came first... the HOA lien or Second Mortgage lien? Lets the Second Mortgage got its lien in 2009, and the HOA filed its lien in 2011. When the HOA forecloses, does the second mortgage go away in this case even though the second mortgage happened before the filing of the HOA lien?